NZD takes the brunt of USD strength – Key levels ahead

The NZD came under heavy pressure yesterday, taking the full force of broad USD strength and a clear shift into risk‑off sentiment. Kiwi has always been highly sensitive to global risk appetite, and yesterday it faced a double hit: NZD being sold and USD being bought, exaggerating the downside move.

The decisive break below 0.6004 was the trigger, setting off a chain reaction of selling as stops were hit and momentum accelerated.
As it’s a potential Reversal Thursday, the focus now is whether the market deteriorates further. The 0.5948–0.5935 zone is pivotal. A loss here exposes 0.5903, which aligns with the 50% Fib and S2.

On the topside, resistance is heavy between 0.5992 and 0.6004. Kiwi will need to work hard against immediate bearish technicals. A clean break above 0.6004 brings the short‑term M/As into play at 0.6027, intersecting with R1. A move through here would ease downside pressure and could tempt nervous buyers back in.

Further down, the 55‑ and 200‑day M/As at 0.5879/72 form a critical support band — unlikely to yield easily, with profit‑taking and defensive buying expected.

AUD/NZD remains stable above yesterday’s 1.1806 high. Keep an eye on this cross — it often signals whether AUD or NZD will lead the next move.
My Money. My Risk.